When considering analytics as a part of your marketing strategy, we tend to think of the technical side of things – the configuration of Google Analytics, the implementation of a tag management system, and so on. However, before beginning any of these implementations it is important to take a step back and first create a measurement strategy.
What is a measurement strategy?
At its core, a measurement strategy is an all-encompassing plan that organizes your business goals and how they will be measured. This strategy follows a path beginning at the broadest goal possible (often a goal for the business as a whole) and breaks it into measurable metrics and specific ways to segment those metrics. These ideas are often thrown into a grid we call a measurement matrix.
- Business Objective: Identifies the goal for the business as a whole
- Goals: Abstract goals that make up the business goals
- Key Performance Indicators (KPIs): Actions that indicate success for a business (for example, engagement with specific content, a store sale)
- Metrics: The tangible metrics that can be pulled from Google Analytics or other measurement system
- Success Targets: An estimation of each metric that would indicate success
- Segments: Ways to divide and analyze the metrics collected (by state, channel, event type)
Advantages of a measurement STRATEGY
One of the biggest strengths of a measurement strategy is a centralized organization of all goals. This system requires taking a look at the larger business objective and finding feasible metrics that make up that goal. Conversely, this strategy also ensures that all metrics you are interested in measuring contribute to the larger goals at hand.
From an analytics perspective, the measurement strategy guides the technical implementation. Creating this strategy ahead of time will allow the implementation of a tag management system to be efficient. Instead of using a “catch all” strategy to track everything possible on the site, you are able to identify key elements to incorporate into your tag management system.
Finally, the measurement strategy can help create clear communication between marketers working for the same business. Having a written plan that defines the most important metrics can streamline tasks (for example, reporting and determining if a period of time was “successful”), because there is a guideline for what will determine success.
CREATING YOUR MEASUREMENT STRATEGY
The best part of a measurement strategy? It’s never too late to create one. Sure, the best practice is to develop this prior to engaging in any measurement or reporting activities, but if you don’t have one, don’t panic. Our digital analytics can work with you to create an organized system for your business to set and achieve all your goals.